Obama endorses Wyden bill giving states freedom on health care

The Associated PressPresident Obama told governors Monday he supports legislation that would allow states to customize the way they satisfy the health care law.

WASHINGTON -- Admitting that no “single party has a monopoly on good ideas,” President Barack Obama told governors Monday he fully supports legislation offered by Sen. Ron Wyden that would give states wide latitude for meeting - or even opting out of portions - of the new health care law.

“I think that’s a reasonable proposal. I support it,” Obama told governors meeting in Washington. “It will give you flexibility more quickly, while still guaranteeing the American people reform. If your state can create a plan that covers as many people as affordably and comprehensively as the Affordable Care Act does -- without increasing the deficit -- you can implement that plan. And we’ll work with you to do it.”

Under Wyden’s bill, which is co-sponsored by Republican Sen. Scott Brown of Massachusetts, states would be free to design health care programs that fit local needs and political standards as long as the result provides care to the same number - or more - people, contains costs and offers services that are equal to or better than those required in the 2010 law.

The power is already in the law, but states cannot ask for waivers until 2017, three years after major portions of the law must be put in place. Senior White House officials conceded the delayed date would force states to create a system to meet 2014 deadlines only to dismantle it as 2017 approaches.

The aides, who spoke with reporters Monday on condition they not be identified, said the White House is “intrigued” by some of the novel ideas being floated in states. Allowing waivers would let those ideas mature and if successful they could be used in other states.

The idea, Wyden says, is for states to have authority to tailor the law before some of its basic pillars go into effect in 2014. That opportunity will vanish if states have to wait, Wyden argues, because they will have already spent millions of dollars complying with the 2014 requirements.

Wyden said in an interview that the full backing of the White House will help him push his bill forward. He also said the news is welcome in Oregon and other states. Wyden said he is optimistic the bill can pass because it’s the first “bipartisan change since the bill was written” two years ago.

“What the states have always said is, give us flexibility,” Wyden said. With more room to maneuver, he said, “We could have a race to the top.”

The idea, Wyden said, if for the federal government to tell states what it wants “and get off our neck so they can find fresh and creative solutions.”

Oregon is eager to try new approaches, Wyden said. “This is playing to our strength and our history,” he said, noting that Gov. John Kitzhaber has already begun looking at ways to shape the law to fit Oregon’s population and budget.

Liberals and some supporters of the law, however, are leery that the opening could give states room to dilute the law. Nearly half of the states are challenging the law in court, arguing - among other things - that the requirement that all people purchase insurance is unconstitutional.

The White House and Wyden said those fears are unwarranted. The federal Department of Health and Human Services must approve all waiver requests and only those that meet four well defined criteria would be considered, senior White House officials said.

State officials must convince federal regulators the changes will:

* Provide coverage that is at least as comprehensive as the coverage offered through health insurance exchanges – a new competitive, private health insurance marketplace. * Make coverage at least as affordable as it would have been through the exchanges. * Provide coverage to at least as many residents as the new law would have provided. * Not increase the federal deficit.

Wyden and Brown want to push up the date for states to ask for waivers that would exempt them from some of the basic elements of the health care law, such as requiring every person to purchase insurance and charging employers a penalty for not providing coverage. Under the bill written by Wyden, states could earn flexibility to experiment if they convince federal regulators that the changes would provide care of equal quality and cost to the same number of people.